After opening in red in the early trade on Friday, domestic markets bounced back 100 points to cross the 60,000 mark in late morning deals. At around 11:05am, the frontline S&P BSE Sensex recovered by 123 points to the day’s high at 60,089. Meanwhile, the broader Nifty hovered from 17,904 to 17,613.
However, Sensex dropped below the 60,000 mark again at 12pm.
Sensex plunged 704.22 points at 59,280.48 in early trade on Friday tracking losses in index majors Reliance Industries, HDFC twins ad ICICI Bank amid persistent foreign fund outflow. Similarly, the Nifty had slumped 181.70 points or 1.02 per cent to 17,675.
“On the flip side if we break 17,600 on a closing basis, the Nifty can slide further towards 17,200,” Manish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments, told Live Mint.
In Thursday’s closing session, equity benchmark Sensex plummeted more than 1,110 points as the realty and banking shares plunged amid flat earnings and cautious sentiment overseas. The only gainer for the day was the capital goods sector with 0.02 per cent.
The fall comes amid the Reserve Bank of India’s (RBI’s) announcement that it will drain cash from the banking system for longer periods, spurring concern the move may temper gains in an equity market driven by record-low policy rates and a retail-investing boom.
As a result, Morgan Stanley downgraded Indian stocks to equal-weight from overweight, following a similar move by Nomura and UBS.
(With agency inputs)
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